He reports that in secret, the administration has been making calls to Wall Street, telling bankers that the administration will find a way to avoid no matter what.

It's not clear what that means: Payment prioritization, the 14th Amendment option, or perhaps some new special measure Geithner could pull out to conserve cash?

That being said, the Administration reportedly does believe that a downgrade is still likely without a deal that cuts costs.

A lot of folks have suspected that August 2 isn't REALLY a debt default day... it might explain the market's ennui at the failure of politicians to solve this issue.

Meanwhile, one GOPer is out saying that if Obama did let a default happen that he'd possibly be impeached, which is hilarious because others have talked about impeachment in the event that the 14th Amendment is invoked.